Decade break from pension contributions could see £90,000 loss - Aegon

'Sacrificing 'free money''

Sophie King
clock • 1 min read

Savers breaking away from pension contributions in their mid-20s could lose out on tens of thousands of pounds, research conducted by Aegon has found.

The analysis looked at the potential eventual losses to the pension pot of a 22-year-old, who joined a workplace pension scheme on an average starting salary of £20,000, if they decided to stop paying their pension contributions. It concluded that a break of 10 years could mean losing almost £100,000 (£91,600) of the total pension fund by state pension age. A break of one year could result in a loss of £7,000 of the total pension fund at state pension age and a break of five years could mean losing £42,100. Baby-boomers 'sleepwalking' into poor financial decisions Indeed, taking a ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'It's a real fee-souper': Why clearing the fog on SIPP charges is now a strategic necessity

'Selecting a SIPP provider should require a strategic inquiry into their fee structures'

James Floyd
clock 05 November 2025 • 4 min read
HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

Analysis finds savers have recouped more than £1.5bn since 2015 introduction of pension freedoms

Martin Richmond
clock 03 November 2025 • 4 min read
Govt ignores pension tax lock call as petition responses top 18,500

Govt ignores pension tax lock call as petition responses top 18,500

AJ Bell started petition; Govt forced to respond after 10,000 signatures

Jenna Brown
clock 23 October 2025 • 2 min read